Intermediate Microeconomics: Consumer Behavior, Part 2

[@syrineali6361]

I've used numerous resources and watched multiple youtube videos from various Professors to help me understand the material. In just a couple of hours, I have learned so much more than all the resources combined. Not only did you make everything clear, but I'm starting to enjoy economics because of your videos. You're amazing at what you do and hope all students studying economics find your platform. Love from Canada

[@linhha4096]

I'm literally idolizing you because of all the work and efforts you have put into making these videos! They helped me, a first-year student, so much that I didn't have a terrifying start to economics lol. Hope you will keep up these good deeds and I wish you a healthy, happy life Prof.! Love and admiration from Vietnam

[@saki7952]

The Goat come back.

[@kennethchukwuemekaogbaga]

Thank you so much Prof. for this clear and comprehensive treatment of consumer behavior. However, i have two observations. 1. In most economics textbooks, I usually read the condition for utility maximization using the cardinal approach and then using the indifference curve analysis (ordinal approach). But in this video, no serious mention was of the cardinal analysis. Secondly, i was expecting that you would show us how to transform, say a hypothetical indifference schedule into a utility function capable of being maximised using mathematical approach. For instance, how a n indifference schedule can be transformed to a function such as U = f(X^2Y^4) or U = 2XY, etc. This is because i think that by using either mathematical or graphical approaches, one should be able to reach thesame conclusion. Once again thank you for your indept teaching. You don't know how much we, your fans appreciate your efforts here.

[@DrAzevedoEcon]

You're welcome! Thanks for watching. It makes me happy to hear that the videos are useful to so many people. I mention cardinality in the video as it relates to a utility function, but only to explain that we only interpret the number that comes out of a utility function ordinally. In other words, consider the simple utility function U=X*Y. If the consumer consumes one unit of X and one unit of Y, they would get one util. If they consume two units of X and two units of Y, they would get 4 utils. If we interpret utils cardinally, then we would say that the consumer gets four times the amount of utility from consuming the second bundle as the first bundle. In other words, they like the second bundle four times as much as the first bundle. However, with modern utility theory, we only interpret utils ordinally. This means that those numbers simply tell us that the consumer likes the second bundle more than the first bundle. It tells us the order they would rank the bundles. We don't use the numbers to try to figure out how much more they like one bundle over another. For your second question, consider the utility function U=X^(1/2)Y^(1/2). If you solve for Y, you get the function for an indifference curve. blog.ms-researchhub.com/2019/12/19/a-brief-example-to-model-the-cobb-douglas-utility-function-using-stata/ This is a standard Cobb-Douglas utility function. It's relatively easy to use this utility function, a budget constraint, and a Lagrangian to analytically solve for the function of the demand curves for X and Y. www.online-vwl.de/english/micro/dynvwlengse21.html

[@suheirmaseng3533]

Thank you so much Sir, I finding the lecture like you for long time. 😊

[@DrAzevedoEcon]

I'm glad the videos are helpful! Thanks for watching.

[@TomasBlynas-yd2qf]

Found these videos helpful, thank you very much!

[@c.kc.k.9817]

the best youtube professor❤

[@DrAzevedoEcon]

Thank you! Thanks for watching!

[@brightstarxiphos3261]

Hello, Professor. I enjoyed watching your videos, and have helped me attain an A+ in my Econ class. I was wondering whether you would consider making videos for intermediate macroeconomics? Thank you again for your videos, as they have made Economics a lot easier to understand!

[@DrAzevedoEcon]

Congratulations! I'm glad I could be a small part of your success. I haven't ever taught intermediate macroeconomics, so I don't have any plans right now to make videos for that.....however, I may do it at some point in the future.

[@pinglu4182]

Hi Dr. Azevedo, only by watching your videos makes me want to change my major....🤣

[@DrAzevedoEcon]

Haha! I think it's the best major...but I may be biased.

[@NinizaMabhida]

You have our endless gratitude 🙏🫂

[@eylulbaysal2562]

Why we say 30 instead of 40 at graph in 21.03 ? Because I think new price of tickets is 5 dollars and equation is 5QTickets+20QPizzas=200 and when QPizza is 0, Qtickets is 40.

[@DrAzevedoEcon]

You can't buy 40 tickets because you had to buy the first 10 for $10 each. That uses up $100 of your income, which leaves you with another $100 that you can use to buy tickets at $5 each. With that $100, you could buy another 20 tickets, which gives you a total of 30 tickets.

[@sarisas6387]

Omg thank you 😊😊 easy to understand more than my lecture from my 3hour class😅

[@DrAzevedoEcon]

I'm glad to be able to help!

[@KeithLain]

Thanks for the class am really enjoying my point of u derstanding but am asking cañ i get a part 3 of this video

[@DrAzevedoEcon]

You're welcome. I think this is the video that you need next: kzbin.info/www/bejne/lXrJfGOsYqyFmLcsi=4JzFCLX3CjReJGdc

[@AbiotGetaa]

I decided not to attend on my boring lecture class and only watch your video. But they evaluate me on my attendance, not by my knowledge. This is what Ethiopian evaluation system is. Attendance worths 20 out of 100. What should I do Dr.azevedo?

[@DrAzevedoEcon]

That's a heavy weight to be placed on attendance. It's unfortunate that they don't place a bit more weight on what you know. I would recommend attending the remaining classes and doing as well as you can on the exams. I wish you the best.

[@AbiotGetaa]

@@DrAzevedoEconI appreciate your real-time response. Thank you.

[@abdullahhussen-sm8lr]

It's really interesting topics❤

[@DrAzevedoEcon]

Glad to hear you found it interesting!

[@RichardMaiap]

Life saver ❤

[@DrAzevedoEcon]

Glad to help! Thanks for watching.

[@WijthaGayan]

Some people will pay a higher price for brand-name goods. For example, some people buy Rolls Royces and Rolex watches to impress others. Does knowingly paying higher prices for certain items just to be a “snob” violate the law of demand?

[@DrAzevedoEcon]

No, this isn't a violation of the law of demand. Some people are interested in the outward appearance of purchasing goods...they are willing to pay more for good that provide that. The key is to recognize that any good is a bundle of attributes...some of which are tangible and some of which are intangible.

[@WijthaGayan]

@@DrAzevedoEcon thank you prof.